Implats (IMPALA Platinum) is reportedly extending voluntary job cut offers to workers at some of its platinum group metal (PGM) shafts in South Africa as it grapples with the impact of sharply declining metal prices. The move is part of the company’s efforts to reduce costs.
Johan Theron, the spokesperson for Implats, explained, “We are obviously doing everything to reduce costs. Labour is a significant cost component, so you always start with labour by offering voluntary separation packages.” This initiative began with head office reductions in October and is now being extended to the Rustenburg Lease shafts.
While Implats’ Rustenburg mines are currently managing to break even, Theron cautioned that if metal prices remain low, further measures may be required. He stated, “The shafts are not making money, but they are not losing money either; they are just getting by.”
In addition to the job cuts, Implats is considering postponing planned spending on expansion projects at its Zimplats and Mimosa units in Zimbabwe, as well as the Two Rivers and Marula mines in South Africa. Theron explained the company’s approach, saying, “We are in the process of resetting the organization for a lower-price environment. If all the initiatives don’t take you to a point where you can survive, you have to do more.”
Sibanye-Stillwater, a miner of PGMs and gold, has also announced potential restructuring measures at its South African PGM mines, with up to 4,095 jobs at stake, particularly at two closed shafts that have been economically depleted. Richard Stewart, Chief Regional Officer for Sibanye-Stillwater’s Africa region, emphasized the need for these steps to ensure the sustainability of the company’s South African PGM operations.
The situation is further compounded by issues at the Stillwater mine in Montana, where production costs for palladium and platinum exceed their market prices. The palladium price has declined nearly 40% in 2023, and platinum is down 14%. Staff departures and a shaft incident have added to the mine’s challenges.
